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c)ThefollowingisthebankstatementofKakamegaRetailTradersforthemonthofOctober2017: Date2017 Particulars Debit Credit Balance Sh. Sh. Sh. October1 Balanceb/d 365,875 2 Chequeno.63 31,000 334,875 2 Chequeno.67 3,548 400,327 2 Chequeno.65 13,000 331,327 2

c)ThefollowingisthebankstatementofKakamegaRetailTradersforthemonthofOctober2017:

Date2017

Particulars

Debit

Credit

Balance

Sh.

Sh.

Sh.

October1

Balanceb/d

365,875

2

Chequeno.63

31,000

334,875

2

Chequeno.67

3,548

400,327

2

Chequeno.65

13,000

331,327

2

Deposit

82,000

318,327

4

Chequeno.69

6,000

394,327

4

Chequeno.68

3,115

391,212

4

Chequeno.64

51,000

340,212

4

Deposit

7,280

347,492

7

Chequeno.70

7,000

340,492

7

Chequeno.71

51,500

288,992

7

Deposit

36,100

325,092

8

Chequeno.66

9,000

316,092

8

Deposit

28,000

344,092

9

Chequeno.72

1,330

342,762

9

Chequeno.73

6,250

336,512

9

Deposit

51,000

387,512

15

Chequeno.74

2,800

384,712

15

Deposit

20,560

405,272

16

Chequeno.75

65,000

340,272

16

Deposit

18,014

358,286

17

Deposit

34,500

392,786

19

Chequeno.76

8,500

384,286

19

Deposit

42,750

427,036

21

Chequeno.79

2,410

424,626

21

Chequeno.77

12,506

412,120

21

Chequeno.78

4,000

408,120

21

Chequeno.81

6,500

401,620

21

Deposit

9,000

410,620

23

Chequeno.82

16,240

394,380

23

Deposit

63,000

457,380

26

Chequeno.84

1,500

455,880

26

Dividends

8,750

464,630

26

Deposit

62,500

527,130

28

Chequeno.88

35,500

491,630

28

Standing

order

(Insurance)

10,400

481,230

28

Chequeno.85

27,000

454,230

28

Chequeno.87

22,500

431,730

28

Deposit

13,025

444,755

31

Servicecharge

750

444,005

31

Deposit

28,050

472,055

Thefollowingisthebankcolumnofthecashbook:

Date

2017

Particulars

Debit

Sh.

Date2017

Particulars

Credit

Sh.

October1

Balanceb/d

365,875

October1

Chequeno.65

13,000

1

Depositedat

bank

7,280

1

Chequeno.66

9,000

3

Depositedatbank

36,100

1

Chequeno.67

3,548

5

28,000

2

Chequeno.68

3,115

8

51,000

4

Chequeno.69

6,000

10.

20,560

5

Chequeno.70

7,000

15

18,014

5

Chequeno.71

51,500

15

34,500

7

Chequeno.72

1,330

17

42,750

8

Chequeno.73

6,250

19

15,700

10

Chequeno.74

2,800

19

9,000

11

Chequeno.75

65,000

22

36,000

15

Chequeno.76

5,800

24

26,500

18

Chequeno.77

12,506

27

13,025

19

Chequeno.78

4,000

28

28,050

19

Chequeno.79

2,410

29

171,010

19

Chequeno.80

3,860

31

31,525

19

Chequeno.81

6,500

22

Chequeno.82

16,240

23

Chequeno.83

15,000

26

Chequeno.84

1,500

28

Chequeno.85

27,000

28

Chequeno.86

10,520

28

Chequeno.87

22,500

28

Chequeno.88

53,500

30

Chequeno.89

2,500

31

Chequeno.90

64,529

31

Chequeno.91

15,500

______

31

Balancec/d

502,481

934,889

934.889

Notes:

1.Thebankreconciliationon30September2017showedthatonedepositwasintransitand

twochequeshadnotyetbeenpresentedtothebank.

2.DepositsofSh.62,500andSh.36,000hadbeenenteredinthecashbookasSh.26,500and

Sh.36,000andinthebankstatementasSh.62,500andSh.63,000,respectively.

3.AchequefromMkulimaforSh.15,700wasdepositedon18October2017butwasdishonouredand

theadvicewasreceivedon4November2017.

4.Counterfoilsforchequesno.76andno.88showedtheyhadbeendrawnforSh.5,800and

Sh.35,500respectively.

Required:

(a)Acorrectcashbookbalance.(8Marks)

(b)Abankreconciliationstatementon31October2017.

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